Perps V3 Features & Release Explainer

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TLDR

Perps V3 Upgrade: A significant improvement over Perps V2, introducing native cross-margin, new margin types, and NFT-based account controls for enhanced trading and usability.
Perps V2 Successes: Over $38 billion in trading volume, attracting numerous traders and accruing over $28m fees, powered by innovative features like an improved off-chain low latency oracle system from Pyth Network.
Key Perps V3 Features: Unified margin system, expanded collateral margin options, MEV-resistant liquidation process, and improved order settlements.
Andromeda Release: Features the first implementation of Perps V3 with Core V3, new collateral options like USDC, deployment on Base chain, and buyback and burn to distribute rewards. Learn more.
Ethereum Mainnet Plans: This particular deployment is designed to cater to a broad spectrum of users, from whales and market makers to protocols like Ethena that focus on delta-neutral positions for stablecoin scaling.

Introduction

Synthetix Perps V3 represents a significant upgrade for the world of onchain perpetual futures. Building on the successes and learnings of V2, this new version is designed to further enhance trading efficiency, usability, and resilience. It introduces many new features that traders love, such as native cross-margin, new margin types, and NFT-account-based controls.

Perps V2: A Foundation of Success

Synthetix Perps V2 was highly successful; it achieved over $38 billion in trading volume, attracted tens of thousands of unique traders, and accrued over 28 million in fees for liquidity providers. Perps V2 will remain operational and accessible alongside the new Perps V3 deployment, ensuring choice for users.

These impressive milestones were the result of innovative features like the improved off-chain low latency oracles, from Pyth Network,and risk-management features like dynamic funding rates and price impact, which collectively enhanced the trader and liquidity provider experience.

These features allowed Synthetix to slash fees in line with centralized perps exchanges and ensure delta neutrality for liquidity providers while supporting 80+ markets across cryptocurrencies, commodities, and forex.

The features behind Perps V2 have become commonplace across the industry, being implemented by many protocols to provide the backbone for their successes.

V3: Building on Success

Leveraging the achievements of V2, Synthetix Perps V3 introduces key upgrades to elevate the trading experience. These features focus on improving the trader and liquidity provider experience, simplifying the integrator experience, and enabling further integrations into the Synthetix Ecosystem.

Native Cross-Margining: Unified margin system, open positions will use the same pooled margin account. Gains on one position are allocated to offset losses on other positions. Allows for easier trading account management.
Expanded Collateral Options: Includes a variety of synths from the V3 spot market, broadening trader control. Users will be able to open trades with sETH, sBTC, and many more as collateral.
MEV-Resistant Liquidation Process: Implements gradual, configurable liquidations, reducing the risk of MEV-sandwiched liquidations.
Improvements to Deterministic Settlements: Enhances deterministic settlement and limits the potential for optionality frontrunning with improvements to low latency oracles
NFT-Based Accounts: Accounts will be controllable via an NFT, allowing traders to transfer their trading accounts, or provide permissions to other accounts to do limited activities on their behalf, such as trading.

Andromeda Isolated Deployment & Experimentation on Base

Synthetix Perps V3’s first implementation will be featured in the Andromeda Release, with the deployment of Core V3 and Perps V3 simultaneously, the addition of new collateral in the form of USDC, and deployment on a new blockchain, Base.

Read more about the upcoming Andromeda release by reading our latest blog post or Twitter space recap.

Ethereum Mainnet Plans

The Core V3 + Perps V3 release on Ethereum Mainnet represents a significant evolution for Synthetix, targeting medium to large traders and protocols in need of perps on L1. This particular deployment is designed to cater to a broad spectrum of users, from whales and market makers to protocols like Ethena that focus on delta-neutral positions for stablecoin scaling.

Ethena’s strategy to utilize this L1 platform is a prime example of how Synthetix V3 can facilitate the scaling of delta-neutral stablecoins. By leveraging the robust and efficient trading environment of Perps V3 on Ethereum Mainnet, Ethena aims to enhance the scalability of its stablecoin through delta-neutral ETH perps.

Tailored to meet the demands of L1 traders who are accustomed to the trade-offs of higher gas fees, this deployment of Core V3 + Perps V3 emphasizes functionality and efficiency. While its primary design caters to a specific segment of the market, the deployment is accessible to all. In doing so, Synthetix V3 positions itself as a versatile and adaptable platform, capable of supporting a diverse range of trading strategies and catering to the needs of various users, from individual traders to large-scale protocols.

Conclusion

Building on the robust foundation and successes of Perps V2, V3 introduces features and enhancements that promise to elevate the trading experience for traders and liquidity providers.

With its upcoming deployment on Base chain, via the Andromeda Release, and Ethereum Mainnet, Perps V3 is set to address a wide range of needs in the DeFi space.